Energy costs drive Cyprus inflation as petroleum prices climb

Cyprus national inflation hits 4.4 per cent in OctoberCyprus’ national inflation rate stood at 4.4 per cent in October, according to figures published by the Cyprus Statistical Service (Cystat) on Thursday, while Eurostat’s separate harmonised measure placed the rate at 5.4 per cent. The difference reflects the use of two distinct measures of inflation, rather than necessarily indicating a discrepancy in the underlying price data. The national figures showed that the Consumer Price Index rose by 1.12 per cent month-on-month, increasing by 1.16 points to 105.17 in October from 104.01 in September. The index recorded an average increase of 2.5 per cent during the January to October period compared with the corresponding months of 2025. Energy-related categories recorded some of the strongest annual price increases, with petroleum products rising by 30.6 per cent compared with October 2025, while electricity and water increased by 13.6 per cent. Industrial goods were the only economic category to record a decline in the comparison, falling by 1 per cent. On a monthly basis, agricultural goods recorded the largest increase, rising by 3.9 per cent compared with September. Cystat’s analysis of annual changes showed that transport prices rose by 13.7 per cent, while housing, water, electricity, natural gas and other fuels increased by 10.8 per cent. Clothing and footwear, meanwhile, recorded a decrease of 9.3 per cent compared with October 2025. In the monthly comparison, clothing and footwear prices rose by 5.4 per cent, followed by housing, water, electricity, natural gas and other fuels at 1.8 per cent. Food and non-alcoholic beverages increased by 1.5 per cent, while transport prices rose by 1.4 per cent. The figures also showed how different categories contributed to the overall movement in the national consumer price index. Restaurants and accommodation services made the largest positive contribution to annual inflation, adding 3.23 index points, followed by recreation, sports and culture at 2.85 points and housing, water, electricity, natural gas and other fuels at 1.93 points. The largest negative contributions came from health, which subtracted 2.61 points, information and communication at 1.56 points, and clothing and footwear at 1.37 points. At a more detailed level, recreational services contributed 2.97 points to the annual change, while mobile communication services had the largest negative contribution, at minus 1.53 points. For the monthly change, clothing and footwear contributed 0.30 points, food and non-alcoholic beverages 0.28 points, and housing, water, electricity, natural gas and other fuels and transport each added 0.23 points. Vegetables recorded the largest positive contribution to monthly inflation, at 0.31 points, while passenger air transport had the largest negative contribution, at minus 0.03 points. The figures come as energy costs continue to place pressure on household budgets in Cyprus. While the national CPI provides an indication of domestic price movements, the HICP remains the appropriate measure for comparing the island’s inflation performance with that of other EU member states. Why are the two rates so different? Cystat’s figures are based on the national Consumer Price Index (CPI), while Eurostat uses the Harmonised Index of Consumer Prices (HICP), which follows a common European methodology designed to make inflation rates comparable across EU member states. The HICP has a broader consumption coverage, including expenditure by tourists and other non-resident households within Cyprus, while the national CPI focuses on domestic household consumption. The indices also use different approaches to calculating expenditure weights. Eurostat’s October figure was a flash estimate published earlier this week, while Cystat’s latest release provides the October national CPI figures. The Cyprus statistical service is scheduled to publish its October HICP data on November 19, providing a more direct comparison with Eurostat’s estimate.